Households across the UK should be vigilant, as mistakes in DWP benefit payments may entitle some to refunds worth thousands of pounds. These errors can occur in both directions:
- If you’ve been underpaid, you could be eligible for backdated payments.
- If you’ve been overpaid, the DWP may demand repayment — even if the funds are already spent — and failure to repay could result in legal consequences.
Let’s break down the most common benefit errors and what steps to take if you’re affected.
DWP State Pension Errors: Who’s Affected?
Caring Responsibilities and Missing NI Credits
If you paused work between 1978 and 2010 to care for a child or sick individual, you may have missed out on Home Responsibilities Protection (HRP) credits.
HRP was designed to protect your National Insurance record during unpaid caring periods, ensuring your State Pension wasn’t affected.
However, a system error failed to award HRP automatically to many eligible individuals. This led to gaps in NI records, leaving thousands — especially older women — with reduced pensions.
How to Check and Claim Backdated Pension
- You might receive a letter from the DWP or HMRC if you’re impacted.
- You can check eligibility and apply for HRP credits on the official gov.uk website.
- The application takes about 15 minutes, and the average back payment is over £7,000, according to MoneySavingExpert.
- The government aims to resolve all errors by March 2027.
Personal Independence Payment (PIP) Errors: Could You Be Owed More?
What Is the “MM Judgement”?
Following a 2019 Supreme Court ruling (the MM judgment), the DWP found that its definition of “social support” in PIP assessments was too narrow.
As a result, many claimants:
- Were denied one of the two PIP components.
- Or received the standard rate when they actually qualified for the enhanced rate.
Who Is Affected by PIP Errors?
- The DWP began a review in 2021 of claims going back to 2016.
- Around 633,338 people are estimated to be impacted.
- Average payouts are around £5,285, but some have received much more — up to £12,000 in some cases.
- The DWP will contact individuals directly if they’re affected.
Newly Flagged PIP Mistakes
The DWP recently identified two additional PIP-related errors:
- Claims rejected due to missing National Insurance numbers, despite not being a requirement.
- Scottish claimants moving to Adult Disability Payment (ADP) lost entitlements due to administrative errors.
- A total of £500,000 and £13 million, respectively, have already been paid out to fix these mistakes.
How to Appeal a PIP Decision
If you believe your PIP claim was wrongly assessed, follow these steps:
- Request a Mandatory Reconsideration Notice from the DWP to reassess your claim.
- If dissatisfied, submit an appeal to an independent tribunal within one month of the reconsideration notice date.
- Appeal hearings can take up to six months.
- If you’re unhappy with the tribunal’s outcome, you may request to have the decision set aside or appeal to the Upper Tribunal.
For full details on the appeals process, visit the official gov.uk PIP appeals page.
Conclusion
If you receive benefits from the DWP, it’s essential to stay alert for possible payment errors — particularly relating to State Pension or PIP.
You could be owed thousands in back payments, and government agencies are actively reviewing and correcting these issues.
Take proactive steps to check your eligibility and file a claim if you believe you’ve been affected.
FAQs
What is Home Responsibilities Protection (HRP), and how does it impact pensions?
HRP was a scheme to safeguard National Insurance records for individuals who took time off work to care for children or disabled relatives between 1978 and 2010. If not applied correctly, it could result in a reduced State Pension.
How do I know if I’m affected by a PIP payment error?
The DWP usually contacts affected individuals directly. However, if you think your PIP was miscalculated — especially after 2016 — you can request a mandatory reconsideration.
Can I still claim if I no longer receive benefits?
Yes. As long as you’re eligible and the mistake occurred during your period of entitlement, you may still claim backdated payments even if you’re no longer a current claimant.
How much could I get back from State Pension or PIP errors?
Typical refunds average £7,000 for State Pension errors and £5,285 for PIP mistakes. However, some individuals have received as much as £12,000 in back payments.
Is a National Insurance number required to apply for PIP?
No, it’s not a mandatory requirement. However, due to a processing error, some claims were mistakenly rejected for lacking one. This issue has since been addressed by the DWP.